This quiz works best with JavaScript enabled. Home > Macroeconomics > Cycles > Business Cycles – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Cycles Quiz 17 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What type of unemployment do recent college graduates experience while looking for a job? A) Seasonal. B) Structural/Technological. C) Cyclical. D) Frictional. Show Answer Correct Answer: D) Frictional. 2. Billy Bob is 17 and workes every October as a zombie at the Netherworld Haunted House during that one month. The rest of the year he is A) Cyclically unemployed. B) Structurally unemployed. C) Seasonally unemployed. D) Frictionally unemployed. Show Answer Correct Answer: C) Seasonally unemployed. 3. Business cycle has four phases: A) Expansion, peak, contraction, trough. B) Peak, expansion, concept, decline. C) Contraction, peak, expansion, uprise. D) Trough, peak, decline, uprise. Show Answer Correct Answer: A) Expansion, peak, contraction, trough. 4. The business cycle directly measures which economic goal? A) Full employment. B) Growth. C) Price stability. D) None of above. Show Answer Correct Answer: B) Growth. 5. In this stage it is important that a business revisits it business plan, evaluates its goals and objectives and sets in place new financial and marketing plans. A) Start-up. B) Growth. C) Maturity. D) Post-maturity. Show Answer Correct Answer: B) Growth. 6. Inflation is defined as an increase in: A) Real wages of workers. B) Real GDP. C) The average price level. D) All consumer products. Show Answer Correct Answer: C) The average price level. 7. Which of the following is NOT an economic indicator used to measure the economy? A) Gross Domestic Product. B) Consumer Price Index. C) National Inflation Level. D) Unemployment Rate. Show Answer Correct Answer: C) National Inflation Level. 8. When the economy enters into a recession this type of unemployment emerges A) Seasonal. B) Frictional. C) Structural. D) Cyclical. Show Answer Correct Answer: D) Cyclical. 9. Which of these is NOT a characteristic of an unemployed person? A) He/she does not work. B) He/she has made specific efforts to find a job. C) He/she is laid off from a job in the succeeding months. D) He/she is undergoing a career change. Show Answer Correct Answer: A) He/she does not work. 10. When using the income approach to calculate GDP, all of the following are necessary components EXCEPT A) Wages. B) Interest paid to lenders. C) Consumer expenditures. D) Profits. Show Answer Correct Answer: C) Consumer expenditures. 11. John went to Sports Clips and purchased a haircut. Where would this show up in the GDP formula? A) Consumption (Consumer). B) Investment (Business). C) Government Spending. D) Exports-Imports. Show Answer Correct Answer: A) Consumption (Consumer). 12. Which of the following groups suffer from high inflation A) Borrowers. B) Lenders. C) Taxpayers. D) Property Investors. Show Answer Correct Answer: B) Lenders. 13. During the contraction phase of the business cycle, what happens to the number of workers needed by producers? A) Increases. B) Decreases. C) Stays the same. D) Nothing. Show Answer Correct Answer: B) Decreases. 14. Steve can type 100 words a minute, yet he can't find a job as a secretary. What type of unemployment is this? A) Cyclical. B) Frictional. C) Structural. D) None of above. Show Answer Correct Answer: C) Structural. 15. The trend line is not a A) Business cycle. B) Macroeconomic goal. C) Both a & b. D) None of above. Show Answer Correct Answer: C) Both a & b. 16. If the public perception is that the economy is in good hands then A) The economy will grow because people will spend money, businesses will hire people, etc. B) A contraction will occur. C) A peak is coming. D) A recession will follow. Show Answer Correct Answer: A) The economy will grow because people will spend money, businesses will hire people, etc. 17. In the circular flow model, money flows A) One way and business revenue another. B) One way and products flow another. C) The same way as goods and services. D) Same way as productive resources. Show Answer Correct Answer: B) One way and products flow another. 18. Read the following headline and choose the condition that correspond with the business cycle. The price of bread has increased 5% over the past three months. A) Peak. B) Contractionary. C) Trough. D) Growth. Show Answer Correct Answer: A) Peak. 19. Each individual on food stamps in Delaware can receive up to $ 194 a month. Is this included in government spending? A) Yes-Government spending. B) Yes-Consumer Spending. C) No-Intermediate Goods. D) No-Purely financial Transaction. Show Answer Correct Answer: D) No-Purely financial Transaction. 20. Which one of the following items is considered an intermediate good? A) Bread. B) Flour. C) Cake. D) Brownies. Show Answer Correct Answer: B) Flour. ← PreviousNext →Related QuizzesMacroeconomics QuizzesBusiness Cycles Quiz 1Business Cycles Quiz 2Business Cycles Quiz 3Business Cycles Quiz 4Business Cycles Quiz 5Business Cycles Quiz 6Business Cycles Quiz 7Business Cycles Quiz 8Business Cycles Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books